Medallion Metals Signs Non-Binding Agreement with TG Metals to Process 60,000 Tonnes of Van Uden Gold Stockpiles

Medallion Metals Expands Processing Feed via Van Uden Stockpile Agreement

Medallion Metals Limited, an ASX-listed gold explorer and developer headquartered in West Perth, Western Australia, operates the Cosmic Boy Concentrator as part of its Forrestania Gold Project. The company announced it has signed a non-binding Term Sheet with TG Metals Limited to process gold-bearing stockpiles from TG Metals’ adjacent Van Uden Gold Project. Medallion will use available capacity at the Cosmic Boy Concentrator to process approximately 60,000 dry metric tonnes of stockpiled gold material from Van Uden.

This processing arrangement supports Medallion’s Early Production Strategy, designed to generate cash flow and optimise processing infrastructure utilisation. Combined with a recently announced Toll Processing Agreement, Medallion anticipates access to around 260 kilotonnes of total processing feed. The Van Uden stockpile processing will utilise spare capacity at Cosmic Boy prior to ore treatment from the Ravensthorpe Gold Project, ensuring no delay to the flagship project’s development schedule.

Commercial Terms and Profit Sharing Between Medallion and TG Metals

The non-binding Term Sheet outlines the commercial framework for cooperation and profit sharing between Medallion and TG Metals. Medallion will handle recovery, transport, and processing of the Van Uden stockpiles through the Cosmic Boy Concentrator, including tailings management. Medallion will recoup a capital charge and agreed operating costs from gross operating profits before splitting remaining pre-tax profits equally with TG Metals. TG Metals remains responsible for any royalties related to the gold material.

The arrangement emphasizes transparency and flexibility. Medallion will make provisional payments to TG Metals after each processing batch, with final reconciliation on an open-book basis considering actual operating costs, metallurgical results, and gold sales. Processing will occur in discrete campaigns, allowing both parties to monitor performance and ensure fair cost and revenue visibility. This enables TG Metals to monetise its stockpiles while Medallion maximises processing capacity utilisation.

Early Production Strategy and Synergy with Toll Processing Agreement

Medallion’s Early Production Strategy is key to generating operating cash flow during development phases. The Van Uden stockpile processing directly supports this by adding processing feed alongside the Toll Processing Agreement, together increasing anticipated feed to approximately 260 kilotonnes. This significantly improves utilisation of the Cosmic Boy Concentrator before full-scale production begins at Ravensthorpe.

Integrating multiple feed sources provides commercial and operational benefits, enabling consistent operations and revenue generation to fund development. Managing Director Paul Bennett highlighted the commercial advantages for both parties, with Medallion optimising available capacity and TG Metals unlocking value from its assets. This approach aligns with Medallion’s focus on execution and cash flow ahead of Ravensthorpe production commencement.

Ravensthorpe Gold Project Development Remains On Schedule

Medallion confirmed that the Ore Processing and Profit Share arrangement with TG Metals will not affect the development timeline or targeted production start of the Ravensthorpe Gold Project. Van Uden stockpiles will be processed using spare capacity at Cosmic Boy before Ravensthorpe ore treatment begins, preserving the primary project schedule. This sequencing reassures investors of Medallion’s ability to execute its strategic plan without delays.

Ravensthorpe remains Medallion’s flagship asset and core path to sustained gold production. By separating Van Uden processing as a near-term opportunity that does not compete with Ravensthorpe’s resources, Medallion provides clear transparency on project priorities and timelines, reinforcing confidence in its Early Production Strategy.

Forrestania Region Emerging as Gold Processing Hub

Medallion’s development of gold processing infrastructure at Forrestania positions it as a potential district catalyst in a historically underexplored gold region. Managing Director Paul Bennett noted the Forrestania goldfield’s significant exploration potential. The Cosmic Boy Concentrator could become a regional processing hub, unlocking value for Medallion and neighbouring explorers like TG Metals.

This strategic positioning offers Medallion multiple value creation pathways beyond its own projects. Acting as a processing service provider to nearby companies with gold assets creates new revenue streams and strengthens regional exploration partnerships. The TG Metals arrangement serves as a proof of concept, demonstrating how Medallion’s infrastructure investments can generate additional commercial opportunities. Success here could attract further processing contracts, boosting Cosmic Boy’s utilisation and long-term profitability.

Conditions Precedent and Path to Binding Agreement

The Term Sheet is non-binding, so neither party is legally committed to a final Ore Processing and Profit Share Agreement yet. It is subject to standard conditions precedent including due diligence and required regulatory and stakeholder approvals. Ore deliveries and processing will only begin once these conditions are satisfied.

There is no guarantee a binding agreement will be executed. Medallion has pledged to announce material terms if a final agreement is signed, providing transparency for investors. Stakeholders should watch for updates on conditions satisfaction and any binding agreement execution.

TG Metals' Van Uden Gold Project and Regional Synergies

TG Metals Limited (ASX:TG6) operates the Van Uden Gold Project with approximately 60,000 tonnes of gold-bearing stockpiles ready for processing. Located near Medallion’s Forrestania assets, Van Uden’s stockpiles represent a valuable resource that TG Metals cannot process independently due to lack of infrastructure, creating a commercial opportunity for both companies.

This partnership reflects a common industry model where explorers with ore but no processing facilities collaborate with companies that have processing capacity. TG Metals gains a route to monetise its stockpiles without major capital expenditure, while Medallion secures a reliable processing feed, establishing a mutually beneficial profit and cost sharing structure.

Environmental and Regulatory Responsibilities

Under the proposed agreement, Medallion will manage recovery, transport, processing, and tailings management of Van Uden stockpiles, assuming environmental and operational obligations during processing. The company commits to conducting activities responsibly and in compliance with applicable Australian mining and environmental laws.

TG Metals remains responsible for paying any applicable royalties on the gold material. Tailings management is a significant environmental responsibility, and Medallion’s existing experience and infrastructure at Forrestania equip it to handle these duties within its compliance framework. Environmental incidents could pose risks to production timelines and costs, as noted in Medallion’s cautionary statements.

Processing Timeline and Operational Execution

The Ore Processing and Profit Share Agreement plans for discrete processing campaigns at the Cosmic Boy Concentrator rather than continuous operation. Ore will be processed in batches, with provisional payments after each batch and final open-book reconciliations. This approach offers operational flexibility and allows Medallion to coordinate Van Uden processing alongside other commitments and the transition to Ravensthorpe ore treatment.

Processing commencement depends on satisfying conditions precedent, including due diligence and approvals. No specific timeline was provided for these milestones. Investors should monitor company updates for progress and any binding agreement announcements. Medallion’s experienced Forrestania team will oversee operational implementation.

Strategic Impact on Medallion’s Shareholder Value

The TG Metals arrangement aligns with Medallion’s focus on execution and cash flow generation. Managing Director Paul Bennett confirmed the company will continue pursuing shareholder-accretive commercial opportunities, with the Van Uden processing deal forming part of a broader strategy to optimise returns.

Securing additional processing feed and revenue sources enhances Medallion’s financial flexibility and reduces reliance on a single revenue stream at startup. The equal profit-sharing model after cost recovery aligns interests and rewards efficient processing. If the Early Production Strategy and Ravensthorpe production proceed as planned, shareholders may benefit from near-term cash flow from third-party processing alongside long-term production from Medallion’s assets.